Bar/Nightclub

Privilege

Dimitrios AsimakopoulosGeorgios ApostolouJohan Mulder

Contents1. Introduction2. Company3. Idea4. Markets5. Architecture & design6. Our Formula7. Financial8. Cost Calculation9. Conclusion10.Questions

1. Introduction

• Municipality of Jülich (33.000 people)– Research centre Jülich– Citadel & Napoleonic bridge head – University of Aachen

• Around 3300 people between 16 and 30 year old

• Lack of friendliness in current bars

2. Company

• Limited Company• Three shareholders• Privilege GmbH, located in Neueβerstraβe in

Jülich, Germany

3. Idea

• Bar/Nightclub• Open during the week as a bar• Open in the weekends as a nightclub• Theme parties• Originality

4. Market (Current)

• Pretty much satisfied• Bars are not full• All bars have the same formula• Personnel is usually not friendly• Target of most bars is different (30 to 60

years old)

4. Market (Positioning)

• Women between the age of 16 and 30 years old

• Main Target areas will be:– (Foreign) Students from the University– Young workers in the Research Centre– Young people living in the region of

Jülich.

4. Market (Competition)

• Lynch’s Irish Pub• Careba• Kuba

4. Market (Competition)

 

Lynch’s Irish Pub Careba Kuba Privilege Interior - + + + Hospitality - + 0 ++ Prices 0 0 0 0 Location 0 + + + Parking + + 0 + Offers + + + +

Strength Popular with students Good offers in the weekend

Cultural events

Nightclub, new formula

Weakness Dark, smokey, unfriendly Just sitting, no dancing

Not a lot of music styles

Reputation, location

5. Architecture & Design

• Building is 350m2

– 20m2 Kitchen– 5m2 Wardrobe– 28m2 Washrooms

5. Architecture & Design

• Bar– Bar with couches, tables and chairs– Soft lighting, design candles– Video screen displaying video clips

• Nightclub– Most chairs and tables will be taken out– 6 Tables will stay i.c.w. the couches

• Outside– Cleaned, new sign

6. Our Formula

• Friendliness and hospitality!• Theme parties

– Water pipe– Western

• Music played to attract women• Being Different is Good• Sponsoring university parties• Announcements and flyering in the university

and the schools

7. Financial (Start up investment)STARTUP INVESTMENTS

Item Price Amount Total investment Asset life Percentage Annual depreciation cost

[€] [pcs] [€] [Years] [X*100%] [€/year]

Building

3 month rent deposit 2000,00 3 6000,00

Exterior renovation 5000,00 1 5000,00 10 0,1 500,00

Licenses 15000,00 1 15000,00

Interior renovation 25000,00 1 25000,00 10 0,1 2500,00

Furniture 15000,00 1 15000,00 10 0,1 1500,00

Bar and equipment 15000,00 1 15000,00 10 0,1 1500,00

Fire extinguishers/Safety signs 2000,00 1 2000,00 10 0,1 200,00

Ventilation/AC-system 7500,00 1 7500,00 10 0,1 750,00

PA-system/lighting 20000,00 1 20000,00 10 0,1 2000,00

Supplies

Drinks/Bar supply 15000,00 1 15000,00

Office equipment

Computer 1000,00 1 1000,00 4 0,25 250,00

Office equipment 2000,00 1 2000,00 10 0,1 200,00

Telephone/Fax machine 250,00 1 250,00 10 0,1 25,00

Travel expenses and networking 5000,00 1 5000,00

1 0,00

Financing

Cash money 5000,00 1 5000,00

1 month salaries 20000,00 1 20000,00

Total investment 158750,00

Unforeseen (15%) 23812,50 1 23812,50

Total start up investment 182562,50 Total depreciation Cost 9425,00

7. Financial (Financing Costs)

Financing Costs Total Investment Costs 182.562,50 € 40% Equity Capital 73.025,00 € 60% Credit Loan Capital 109.537,50 € Interest Rate 7% Running Time (Years) 10

Year Remaining Dept Interest Costs per

Year Repayment per

Year 1 109.537,50 € 7.667,63 € 10.953,75 € 2 98.583,75 € 6.900,86 € 10.953,75 € 3 87.630,00 € 6.134,10 € 10.953,75 € 4 76.676,25 € 5.367,34 € 10.953,75 € 5 65.722,50 € 4.600,58 € 10.953,75 € 6 54.768,75 € 3.833,81 € 10.953,75 € 7 43.815,00 € 3.067,05 € 10.953,75 € 8 32.861,25 € 2.300,29 € 10.953,75 € 9 21.907,50 € 1.533,53 € 10.953,75 €

10 10.953,75 € 766,76 € 10.953,75 € Money Paid Back 42.171,94 € 109.537,50 € Total Money Paid 151.709,44 €

8. Cost Calculation (Fixed Costs)

Fixed Costs Description Costs per month Costs per year Rent 2.000,00 € 24.000,00 € Heating 600,00 € 7.200,00 € Electricity 1.000,00 € 12.000,00 € Waste 100,00 € 1.200,00 € Marketing/Advertising 500,00 € 6.000,00 € Insurance 1.500,00 € 18.000,00 € Managers/Owners 18.000,00 € 216.000,00 € Total 284.400,00 €

8. Cost Calculation (Personnel Costs)

Personnel Costs Employment Type Number Costs (Euro/Month) Costs (Euro/Year)

Bartender Part-time 1 2.200,00 € 26.400,00 € Additional Bartender Part-time 2 1.200,00 € 14.400,00 € Waitress Bar Part-time 2 1.200,00 € 14.400,00 € Safety Guard/Security Part-time 2 1.900,00 € 22.800,00 € Club Assistant Part-time 2 1.200,00 € 14.400,00 € Cash Desk Girl Part-time 1 600,00 € 7.200,00 € Cleaning Lady Part-time 1 600,00 € 7.200,00 € Disc Jockey Part-time 1 1.300,00 € 15.600,00 € Wardrobe Keeper Part-time 1 600,00 € 7.200,00 € Total Costs 10.800,00 € 129.600,00 €

8. Cost Calculation (Total Costs per Year)

Total Costs per Year Costs 1st Year 2nd Year 3rd Year 4th Year 5th Year Depreciation 9.425,00 € 9.425,00 € 9.425,00 € 9.425,00 € 9.425,00 € Financing 7.667,63 € 6.900,86 € 6.134,10 € 5.367,34 € 4.600,58 € Variable 6.575,00 € 26.430,00 € 33.750,00 € 34.970,00 € 43.510,00 € Fixed 284.400,00 € 284.400,00 € 284.400,00 € 284.400,00 € 284.400,00 € Personnel 129.600,00 € 129.600,00 € 129.600,00 € 129.600,00 € 129.600,00 € Total 437.667,63 € 456.755,86 € 463.309,10 € 463.762,34 € 471.535,58 €

Total Costs per Year Costs 6th Year 7th Year 8th Year 9th Year 10th Year Depreciation 9.425,00 € 9.425,00 € 9.425,00 € 9.425,00 € 9.425,00 € Financing 3.833,81 € 3.067,05 € 2.300,29 € 1.533,53 € 766,76 € Variable 43.510,00 € 43.510,00 € 43.510,00 € 43.510,00 € 43.510,00 € Fixed 284.400,00 € 284.400,00 € 284.400,00 € 284.400,00 € 284.400,00 € Personnel 129.600,00 € 129.600,00 € 129.600,00 € 129.600,00 € 129.600,00 € Total 470.768,81 € 470.002,05 € 469.235,29 € 468.468,53 € 467.701,76 €

8. Cost Calculation (Drinks)

Type Price Alcoholic

Beer Tap 0.25 l 1,80 € Beer Tap 0.5 l 2,50 € Wine glass 2,50 € Sekt 2,50 € Champagne 4,00 € Spirits 3,50 € Spirits special 5,00 € Cocktails 5,00 €

Non-alcoholic Coffee 1,75 € Coffee Espresso 1,75 € Coffee cappuccino 2,00 € Chocolate 2,30 € Juices 1,80 € Soft drinks 1,80 €

Tobacco Water pipe 8,00 €

8. Cost Calculation (Customer Flow)

Customer Flow Day Monday Tuesday Wednesday Thursday Friday Saturday Sunday Total guests 150 250 200 350 500 Total guests admission 0,00 0,00 0,00 0,00 175,00 350,00 0,00 Admission fee 0,00 € 0,00 € 0,00 € 0,00 € 3,00 € 3,00 € 0,00 € Total admission sales 0,00 € 0,00 € 0,00 € 0,00 € 525,00 € 1.050,00 € 0,00 € Average drinks per person 0,00 1,80 2,50 2,25 3,50 4,00 0,00 Average price per consumption 0,00 € 2,00 € 3,50 € 2,25 € 2,75 € 2,25 € 0,00 € Average beverage sales per guest 0,00 € 3,60 € 8,75 € 5,06 € 9,63 € 9,00 € 0,00 € Total income per day 0,00 € 540,00 € 2.187,50 € 1.012,50 € 3.368,75 € 4.500,00 € 0,00 € Total per week 11.608,75 € Total per month 50.304,58 € Total per year 603.655,00 €

8. Cost Calculation (Total Income per Year)

Total income per Year Costs 1st Year 2nd Year 3rd Year 4th Year 5th Year Max Income 603.655,00 € 603.655,00 € 603.655,00 € 603.655,00 € 603.655,00 € Percentage expected 60% 75% 95% 100% 100% Real Income 362.193,00 € 452.741,25 € 573.472,25 € 603.655,00 € 603.655,00 € Total costs 437.667,63 € 456.755,86 € 463.309,10 € 463.762,34 € 471.535,58 € Total - 75.474,63 € - 4.014,61 € 110.163,15 € 139.892,66 € 132.119,43 €

Total income per Year Costs 6th Year 7th Year 8th Year 9th Year 10th Year Max Income 603.655,00 € 603.655,00 € 603.655,00 € 603.655,00 € 603.655,00 € Percentage expected 100% 100% 100% 100% 100% Real Income 603.655,00 € 603.655,00 € 603.655,00 € 603.655,00 € 603.655,00 € Total costs 470.768,81 € 470.002,05 € 469.235,29 € 468.468,53 € 467.701,76 € Total 132.886,19 € 133.652,95 € 134.419,71 € 135.186,48 € 135.953,24 €

8. Cost Calculation (Total Cash Flow)

Total Cash Flow

-100.000

-80.000

-60.000

-40.000

-20.000

0

20.000

40.000

60.000

80.000

1 2 3 4 5 6 7 8 9 10

Time [year]

Div

ide

nd

[e

uro

]

8. Cost Calculation (Total Cash Position)

Total Cash Position

-150.000

-100.000

-50.000

0

50.000

100.000

150.000

200.000

250.000

300.000

350.000

400.000

1 2 3 4 5 6 7 8 9 10

Time [year]

Ca

sh

Po

sit

ion

[e

uro

]

9. Conclusion• Privilege is expected to start making profit from the

3rd year• Privilege is expected to have no debt in the 4th year• Privilege will be able to have a stable future in Jülich

after 5 years.• In the future, there might be possible expansion

possibilities between the Jan von Werth Strasse and the An der Leimkaul for a bigger club if our formula proves to be effective

10. Questions

“Show me the money”

Jerry McGuire